In volatile trade, the rupee fell by 10 paise to close at nearly two-week low of 53.07/08 against the U.S. currency following good dollar demand from importers amid weak local stocks.
Continued capital inflows, however, capped the downslide to certain level, a dealer said.
In a see-saw trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply lower at 53.35/36 a dollar against last close of 52.97/98.
Later it went further down to the day’s low of 53.51 on sluggish local stocks amid dollar buying by importers, mainly oil refiners, to meet their month-end requirements.
Strong dollar overseas too weighed on the rupee. The dollar index, a gauge of six major currencies, was up by about 0.15 per cent while New York crude was trading below $100 a barrel in European market today.
However, late dollar selling by exporters and some banks pulled the rupee up to a high of 52.98 before settling at 53.07/08.
Sustained capital inflows too helped the rupee recovery at the fag end. FIIs pumped in $181.36 million in straight four sessions since December 23.
The BSE benchmark Sensex on Thursday closed down by almost 184 points, or 1.17 per cent, extending losses for the straight third day.